Fruit and vegetable growers will soon have financial protection if their customers fail to pay.
The Senate has approved a private member’s bill that amends and federal Bankruptcy and Insolvency Act to provide growers protection that’s similar to their United States peers who have had it for years.
“The passage of Bill C-280 has been the result of decades of advocacy by organizations and industry members across the fresh produce supply chain and in the broader agriculture sector,” said president Ron Lemaire of the Canadian Produce Marketing Association in a news release.
“The positive impact of Bill C-280 on the highly integrated fresh produce industry cannot be overstated,” said Luc Mougeot, president and chief executive officer of the Fruit and Vegetable Dispute Resolution Corporation.
“The lack of a financial protection mechanism in Canada has been a pain point in our trading relationship with the United States for many years,” Mougeot said.
“We look forward to working with our U.S. counterparts to put in place reciprocal protection and provide stability for produce sellers on both sides of the border.”
Canadians had to post a double bond to access protection on exports under the U.S. protocols.
It is Scot Davidson, a Conservative who represents York-Simcoe, who introduced the bill.
